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The clarification of the criteria is intended to provide customers
with a more precise definition of actively coupled so they may more
easily determine when they achieve active coupling and qualify for
aggregated Parallel Sysplex License Charge pricing.

Customers that do not meet the qualifying criteria will not have the
advantage of aggregating MSUs in calculating PSLC prices.

Intended Customers

All customers that are currently receiving aggregated Parallel
Sysplex pricing, customers who have outstanding aggregated Parallel
Sysplex pricing proposals, and customers that are likely to request
aggregated Parallel Sysplex pricing soon.

The PSLC Exhibit and the Attachment for Parallel Sysplex License
Charges require that customer's machines be operating in an "actively
coupled" environment to qualify for aggregated PSLC pricing. The
criteria clarifies what it means to meet that requirement.

To be considered "actively coupled" customers must comply with the
following conditions:

All Processors in the Parallel Sysplex must be physically attached
via coupling links to a common Coupling Facility from Group B of
the PSLC Exhibits and via timer links to a common Sysplex Timer
(R).

Note: If a Coupling Facility is divided into multiple logical
partitions (LPAR's), all processors must be attached to the same
Coupling Facility LPAR.

All OS/390 (TM) and MVS/ESA (TM) V5 images that comprise the
Parallel Sysplex environment must have at least one common systems
enablement function activated to use the coupling facility across
all images in the sysplex. Eligible Systems Enablement functions
are listed below:

Application Data Sharing including:

IMS (TM) TM: with IMS DB or DB2 (R)

CICS (R): with IMS DB or DB2 or VSAM RLS

TSO and DB2 data sharing

An eligible Independent Software Vendor's Data Base from
Group C of the PSLC Exhibits.

GRS Star Implementation

JES2 Checkpoint in the coupling facility

RACF (TM) database caching

SmartBatch multisystem processing

Automated tape sharing and switching

VTAM (R) Generic Resources

VTAM MULTINODE Persistent Sessions

System logger SYSLOG (OPERLOG)

System logger LOGREC

System logger Resource Recovery Services

The configuration and operating modes described in this exhibit
must be the normal mode of operations for this environment. The
OS/390 and MVS (R) Images participating in the above sysplex
functions must account for at least 50% of the total OS/390 and
MVS workload on each machine.

A processor can only be in one Parallel Sysplex for pricing
purposes. If the processor is partitioned, and the partitions are
in different qualifying Parallel Sysplexes, the customer may
select which Parallel Sysplex the processor will be included in
for billing.

The customer must notify IBM when they qualify for aggregated PSLC
pricing under these criteria for current and new Parallel
Sysplexes. Sysplex pricing will apply on receipt of the
notification.

Customers currently receiving aggregated PSLC pricing who do not meet
this definition of actively coupled will be granted a grace period in
which to take action to meet the criteria prior to losing the benefit
of aggregated PSLC pricing. The grace period will vary depending on
a number of factors, among them, the number of processors and the
complexity of the sysplex function being implemented. Customers
should contact their IBM representative to determine their grace
period. Customers that do not meet the criteria at the end of the
grace period will lose the benefit of aggregated Parallel Sysplex
pricing.

Effective today, customers adding or upgrading processors to existing
sysplexes for current workloads will continue to receive aggregated
PSLC Pricing during the grace period. Customers adding a processor
to existing sysplexes for new workloads must meet the criteria before
this processor's associated MSU's will qualify for aggregated PSLC
pricing.

Customers installing a new Parallel Sysplex after this criteria is
announced will receive aggregated PSLC pricing when they meet this
criteria.

Parallel Sysplex, MVS/ESA, OS/390, IMS, RACF, and RMF are
trademarks of International Business Machines Corporation in
the United States or other countries or both.
Sysplex Timer, DB2, CICS, VTAM, and MVS are registered
trademarks of International Business Machines Corporation in
the United States or other countries or both.
Other company, product, and service names may be trademarks or
service marks of others.